It will use a specially developed 3.0-litre normally aspirated V8 engine weighing less than 90 kilograms which should return a staggering power to weight ratio of around 1000bhp per tonne.
The engine uses a compact 75 degree V arrangement with 4 valves per cylinder and a unique cam drive arrangement to further reduce engine size and weight.
Power is sent to the rear wheels via a Sadev six-speed sequential gearbox operated through a manual shift, although a paddle shift option is also in development.
Performance is expected to be roughly on par with the Bugatti Veyron - and claim no other car can make - with a zero to 100km/h time of around 2.5 seconds and zero to 160km/h appearing in less than six seconds.
"Our aim is to build the ultimate road legal track day car," said Simon Saunders, Director Of Ariel. "Our motto has always been go fast - have fun and the Atom V8 is certainly going to do that."
The Atom 500 will be equally capable in the hands of both amateur and professional drivers with adjustable traction and launch control as well as programmable settings for different conditions providing a flexible safety net.
Along with the significant boost in power, it will also feature new suspension and brakes specific to the 500, aero package and many Atom options as standard.
While pricing is yet to be announced, nearly half of the special limited edition run of 25 vehicles have already been sold.